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Income and Poverty across SMSAs: A Two-Stage Analysis

Author

Listed:
  • Robert M. Leekley

    (Illinois Wesleyan University)

  • Michael C. Seeborg

    (Illinois Wesleyan University)

Abstract

Two popular explanations of urban poverty are the "welfare-disincentive" and "urban-deindustrialization" theories. Using cross-sectional Census data, we develop a two-stage model to predict an SMSAs median family income and poverty rate. The model allows the city's welfare level and industrial structure to affect its median family income and poverty rate directly. It also allows welfare and industrial structure to affect income and poverty indirectly, through their effects on family structure, education, and employment. The results give limited support to both the welfare-disincentive and urban-deindustrialization explanations of urban income levels and poverty rates.

Suggested Citation

  • Robert M. Leekley & Michael C. Seeborg, 1993. "Income and Poverty across SMSAs: A Two-Stage Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 43-58, Winter.
    • Handle: RePEc:eej:eeconj:v:19:y:1993:i:1:p:43-58
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume19/V19N1P43_58.pdf
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    References listed on IDEAS

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    3. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-276, March.
    4. Sheldon Danziger & George Jakubson & Saul Schwartz & Eugene Smolensky, 1982. "Work and Welfare as Determinants of Female Poverty and Household Headship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(3), pages 519-534.
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    Cited by:

    1. John Iceland, 1997. "Urban labor markets and individual transitions out of poverty," Demography, Springer;Population Association of America (PAA), vol. 34(3), pages 429-441, August.

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    More about this item

    Keywords

    Welfare;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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